Neinor Revises its Profit Forecast for 2019 Down by 50%

9 April 2019 – Expansión

Neinor has a new CEO and is revising down its profit and construction forecasts. Borja García-Egotxeaga (pictured below), Operations Director at the property developer until now, will take over from Juan Velayos, and will oversee a new-look strategic plan.

The revised forecasts involve the firm delivering between 1,200 and 1,700 homes in 2019, compared with the 2,000 units initially planned, and achieving an EBITDA of €70 million, down by 53% compared to the initial projection of €150 million.

Neinor has also cut its forecasts for 2020, with a revised EBITDA of €100 million for next year compared with the initial forecast of €300 million, as well as new home deliveries of between 1,700 and 2,400 units, down from 4,000.

The company underlined its intention to remunerate its shareholders with dividend distributions of €200 million until 2022 and to repurchase up to €100 million in shares to offset the decrease in its share price.

Original story: Expansión (by Rebeca Arroyo)

Translation/Summary: Carmel Drake

110